360pi Analysis: Pricing Heats Up as Summer Approaches
Ottawa, Canada: (PRWEB) May 14, 2014 -- 360pi today announced the results of its pricing analysis of the power drill, television and outdoor gear categories, which highlight retailers’ seasonal pricing strategies as the industry focuses on home improvement, outdoor recreation and other warm weather activities. From January through early April of this year, 360pi compared the pricing strategies of the industry’s top retailers, such as Amazon, Walmart, Home Depot, Costco and others, all based off of Amazon’s own product assortment relative to other retailers in power drills, televisions and outdoor gear.
‘Power Drills’ is the Hottest Category
Amazon drilled down on power tools this spring, lowering prices on power drills by 14 percent from January 19 to April 9. Except for January 16-23, when Home Depot claimed the lowest prices for power drills, Amazon maintained its lead in price competitiveness throughout January and April. In fact, Home Depot priced up to five percent below Amazon for nearly seven days—from January 16-23—before Amazon reclaimed the lowest prices on power drills by performing its steepest short-term price drop of the season in the days following January 23. On average, Walmart followed Amazon’s lead closely, never pricing more than five percent above Amazon, and actually matching Amazon prices consistently throughout March.
“The steady drop in prices from January through April suggests that retailers are attempting to make power drills a more attractive buy now that the ice is melting from much of the northern United States and Canada,” said Jenn Markey, VP of Marketing of 360pi. “Home improvement is a popular spring and summertime activity, and most retailers are adjusting prices accordingly.”
Television Prices Shot Up with March Madness, Costco Scores a Big Win
Amazon dropped prices on televisions by nearly ten percent just before the Super Bowl, and then steadily increased prices by 15.5 percent from January 29 to April 9—jumping up right after the Super Bowl heading into the March Madness playoff season. Amazon was the most price aggressive retailer in the category, causing retailers to appear as much as 22 percent higher priced than Amazon during January and February. From January 2 to April 8, Costco maintained lower prices than Amazon 75.3 percent of the time—and at its best, Costco’s prices were up to four percent lower than Amazon.
“Weather isn’t the only thing that heats up in the spring and summer months—March Madness is the spring’s most popular sport, and baseball ramps up as we head into the summer,” said Markey. “The fact that television prices appear to have increased just after the Super Bowl heading into March Madness may point to the theory that retailers believe they don’t have to create a need for people to buy televisions during popular televised sport months.”
Amazon and Walmart Dominate in Outdoor Gear Category
According to the pricing data, Amazon appears to have set its sights on gaining market share in outdoor gear. In the outdoor SKUs that Amazon, Sears, Dicks Sporting Goods and Newegg have in common, Amazon has prices that were 23 to 40 percent lower than its competition. Walmart was also aggressive with its outdoor gear prices, as it was never over five percent higher than Amazon in Amazon’s own assortment.
About 360pi
360pi derives profitable insights from product and pricing big data to help leading omnichannel retailers, etailers, and manufacturers compete and win in a price transparent world. 360pi's customer base accounts for over $US100 billion in annual retail sales and includes Ace Hardware, Build.com, Overstock.com, and RIS Fusion award-winner Best Buy Canada. 360pi monitors millions of products with unprecedented accuracy to give retailers and manufacturers real-time visibility into the market with full awareness of the competitive pricing landscape to "right price" to their respective customers. Ultimately, 360pi helps customers make smarter pricing decisions to drive increased revenues and margins.
Brittany Gracka, 360pi, http://www.360pi.com, +1 (613) 562-2525 Ext: 511, [email protected]
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